Contact Information: Company Contact: James Christodoulou Chief Financial Officer Tel. 212-488-5050 E-mail: james@oceanfreightinc.com Investor Relations / Financial Media: Capital Link - New York
OceanFreight Inc. Grows Fleet to Nine Vessels With the Acquisition of a Panamax Bulk Carrier and Enters Into a $325 Million Credit Facility With Nordea Bank
| Source: OceanFreight Inc.
ATHENS, GREECE--(Marketwire - September 19, 2007) - OceanFreight Inc. (NASDAQ : OCNF ), a NASDAQ
listed bulk shipping company, announced today that it has entered into an
agreement to acquire a ninth vessel for its fleet, a Panamax drybulk
carrier to be renamed Augusta, that will immediately commence a one-year
time charter upon its delivery to the Company in early January 2008. The
purchase price of this vessel is $61.6 Million. The Company also announced
that it has entered into a new $325 million loan facility with Nordea Bank.
Bob Cowen, OceanFreight's Chairman and CEO, said, "The Nordea $325 million
credit agreement, which is comprised of a $200 million revolving credit
facility and a $125 million delayed draw term loan, provides us with the
capital and financial flexibility to grow our company. Nordea is a leader
in ship finance and we are pleased that they have provided us with this
highly attractive corporate facility. Our first use of this expanded credit
availability is to refinance our existing loan and add a ninth Panamax dry
bulk vessel to our fleet. The Augusta, built in 1996, will commence a
one-year charter at the net daily rate of $57,000 when she is delivered in
January of 2008 and will be highly accretive to our cash flow."
With the addition of this new vessel, the Company's nine vessel fleet will
be comprised of one Capesize and eight Panamax bulk carriers aggregating
approximately 742,000 deadweight tons. Three of the nine vessels in the
Company's fleet were delivered during the first week of June, four were
delivered between July and August, and the eighth vessel is expected to be
delivered in November of this year.
About OceanFreight Inc.
OceanFreight Inc. was incorporated on September 11, 2006 under the laws of
the Republic of the Marshall Islands. The Company was formed to acquire an
initial fleet of seven secondhand drybulk carriers. The Company maintains
its headquarters in Athens, Greece, and will also maintain an office in New
York.
On April 30, 2007, OceanFreight closed its initial public offering of
12,362,500 common shares, at a price of $19.00 per share. The Company's
total outstanding equity also includes 2,060,000 subordinated shares.
OceanFreight's common shares trade on the NASDAQ Global Market under the
symbol "OCNF."
Visit our website at www.oceanfreightinc.com
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future events
or performance, and underlying assumptions and other statements, which are
other than statements of historical facts.
The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical
operating trends, data contained in our records and other data available
from third parties. Although OceanFreight Inc. believes that these
assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, OceanFreight
Inc. cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include
the strength of world economies and currencies, general market conditions,
including changes in charter rates and vessel values, failure of a seller
to deliver one or more vessels to us or delay in taking delivery of one or
more vessels, default by one or more charterers of our vessels, changes in
demand that may affect attitudes of time charterers, scheduled and
unscheduled drydocking, changes in OceanFreight Inc.'s operating expenses,
length and number of off-hire periods and dependence on third-party
managers; dry-docking and insurance costs, changes in governmental rules
and regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents, international hostilities and political events or acts by
terrorists.
Risks and uncertainties are further discussed in documents filed by
OceanFreight Inc. with the U.S. Securities and Exchange Commission.